China’s economy is growing at a slow pace but it is said to overtake the U.S. and become the world’s top business travel market by 2017. This statement came into lights after a report was published by Visa (V) and released by the GBTA Foundation.
GBTA Foundation expects China to outrun the U.S. and for good reason. After looking at the spending growth in China in the year 2012, the GBTA Foundation expects China’s meteoric growth to double by 2017, which will be $375 billion. The foundation also noted that China’s business travel grew by 16.6% in the year 2014.
Talking to the press, the Executive Director of GBTA Michael McCormick expressed the opinion that China cannot be compared to any other market, as the economy is growing at an unprecedented rate, and consequently there is a phenomenal increase in the number of business travelers.
Michael McCormick believes that China will continue to outperform other countries in the business travel market as its economic policies provide a healthy business growth opportunity and is giving birth to a strong business industry.
The Vice President and Head of Products of Visa China, Stanford Lin also agrees with McCormick. Basing his opinion on China’s strong economic growth and future projections, he expressed optimism for the business travel market, stating that it would grow faster than any other market in the world.
The report from GBTA also shows that China will improve its international outbound business spending by 13.6% this year and 11% in 2016. Despite the significant growth in the business travel market, the GBTA reported that China will still face troubles and challenges as the entire world’s economy is facing a downward incline.
The report from GBTA also states that due to the growth in business travel and leisure travel in China, the hotel industry is showing significant interest in China’s market. The hotel industry will continue to invest hefty amounts in upscale business and luxury hotels in China. According to a report by GBTA, the rate at which demand is growing is significantly greater than the rate at which supply is growing in every class of hotel.